Europe midday: Equities move higher after Fed and PBoC

The main European benchmarks are now near their best levels of the session in the wake of last night´s policy decision from the US Federal Reserve and following the Chinese central bank´s decision to lower its main repurchase (or “repo”) rate.

As expected, the US central bank undertook another $10bn reduction in the size of its asset purchase program on Wednesday evening and reiterated that it will likely maintain the current target range for the Fed funds rate for a considerable period of time after quantitative easing is finally wrapped up in October.

The Dax Xetra is higher by 0.99% at 12:30 to 9,740.37 and the FTSE Mibtel up by 0.46% to 21,208.69.

Nevertheless, the US central bank did modify its Summary of Economic Projections, shifting its median projection for the date of interest rate rises higher on all time horizons.

There is a raft of US data due out later in the day. However, all eyes will undoubtedly be on the result of Scotland´s independence referendum, a once in a life-time event for all and a fateful day for Britons, when the continuity of the 307-year old United Kingdom – at least in its current form – will be decided.

On the Stoxx 600 the largest gains can now be seen in the following industrial groups: Chemicals (1.53%), Travel&Leisure (1.37%) and Banks (1.21%).

US Fed President Janet Yellen is due to take to the podium at 13:00.

Front month Brent crude futures were just about flat trading at $98.97 per barrel on the ICE.

The euro/dollar was edging higher by 0.31% to 1.2880 as of 09:30.